This report is prepared in accordance with the Annual Reports Act. The report is limited to internal control and risk management regarding the financial reporting and includes the entire Group. The Board of Directors bears ultimate responsibility for ensuring that Bilia’s internal control works satisfactorily and that adequate financial reports are presented. Under the Swedish Companies Act, the Board is responsible for Bilia’s organisation and management. It is the responsibility of the Board that Bilia’s accounting, management of funds and financial situation in general includes satisfactory controls. This responsibility cannot be delegated but always rests with the Board of Directors.
Bilia’s control environment is based on the communication of clear guidelines to all subsidiaries to ensure that the same rules and principles are applied in the Group’s different companies and within each business area and that the necessary tools are in place out in the subsidiaries to enable them to report back to Bilia AB in a correct and uniform manner. A balanced risk analysis is performed by the Board, and significant risks within the Group are identified. Guidelines are issued within the Group to inform and instruct concerned persons how to manage and minimise or, if possible, eliminate these risks. Some control is exercised manually, while other control procedures are built into the system solutions that are used within the organisation. The information flow within the Group is channelled to the right persons at the right time to ensure that mistakes are avoided. All concerned personnel shall have access to correct information in order to make well-balanced decisions and ensure that the financial reporting is always up-to-date and in keeping with the latest directives. Issued handbooks and guidelines etc. are subject to continuous review and updating to take into account changes in the business or external circumstances.
A function for internal audit in the Bilia Group was established in 2009. Bilia’s Chief Financial Officer has approved the audit plan presented by the internal auditors. The internal auditors report directly to Bilia’s Chief Financial Officer and furnish regular reports to the Board’s Audit Committee. The audit plan is regularly evaluated and was last updated on 7 December 2010.
An extensive review project was initiated several years ago where all of the Group’s essential processes will be documented, analysed, risk-assessed and, if necessary, improved. Since last year’s annual report was published, three processes have been reviewed and a total of fifteen processes have now been evaluated. These processes will be revised and quality-assured at regular intervals during the coming years. The working groups have been composed of operational managers for the various processes and financial managers and controllers from the subsidiaries and the Parent Company.
The work of assuring internal control is a continuous process that should be subject to constant review, follow-up and improvement.